In a recent interview with Fox News, former US President Donald Trump claimed that India is prepared to eliminate all tariffs on American goods, highlighting the South Asian nation as a key example of the trade barriers he’s long aimed to dismantle.
Trump’s assertion has sparked fresh conversations around US-India trade relations, even as India’s foreign ministry cautions that such claims may be premature.
“They make it almost impossible to do business,” Trump said, referring to India’s existing tariff structure. “Do you know they’re willing to cut 100% of their tariffs for the United States?” he added. However, the former president was quick to note that he is not rushing into finalizing a deal. “That’ll come soon. I’m in no rush. Look, everybody wants to make a deal with us,” Trump told the network.
The bold claim, if true, would mark a significant shift in India’s trade stance and could pave the way for a major economic partnership. However, India’s External Affairs Minister S Jaishankar responded cautiously, saying that while trade discussions between the two nations are ongoing, no agreement has been finalized. “These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries,” Jaishankar stated during a media interaction on Thursday.
He emphasized that jumping to conclusions at this stage would be “premature,” underscoring that India’s expectation is for any agreement to be balanced and equitable.
Trump’s remarks come as he outlines a broader plan to reshape global trade dynamics. He mentioned that his team is preparing to announce new import duty rates for several trading partners within the next two to three weeks. This move, he suggested, is part of a more assertive US strategy where deals may not necessarily involve lengthy negotiations, hinting at potential unilateral decisions.
In a related context, Trump said he had previously used trade incentives as a diplomatic tool, notably between India and Pakistan. Referring to tensions following the Pahalgam terror attack in India, Trump claimed that he used trade as a mechanism to encourage a ceasefire between the two rival nations. “I’m using trade to settle scores and make peace,” he remarked.
Pakistan has also been offered the possibility of expanded trade ties, according to Trump, suggesting that the United States could use its economic leverage to stabilize South Asia.
Meanwhile, the Trump administration has also been actively working to ease trade tensions with China. Trump revealed that after negotiations, the US reduced tariffs on Chinese goods from 145 per cent to 30 per cent, while China dropped its rates from 125% to 10%. “If I didn’t do that deal with China, I think China would have broken apart,” he claimed.
As these global trade strategies unfold, it remains to be seen how India responds to Trump’s claims and what form any eventual US-India trade agreement will take.
